Insurance in the Construction Sector

Insurance is essential due to the variety of risks inherent in construction work and exposure to unforeseen factors. The most common risks include environmental conditions such as wind or rain, the complexity of activities, and the amount of heavy machinery involved. Additionally, the interaction between different parties, such as contractors, subcontractors, and designers, increases the likelihood of accidents, making insurance fundamental to ensure the safety and peace of mind of everyone involved.

Accidents in construction are inevitable, but insurance exists to minimize their economic impacts and protect the affected parties. Some of the most frequent risks that should be covered by insurance include damage from fires, thefts, natural disasters, construction defects, negligence, and design errors. Below are some of the key insurances in the sector:

1. Construction All Risks Insurance (TRC): Covers accidental or unforeseen damages during the execution of the project, adapting to the specific needs of each project.
2. Installation All Risks Insurance (TRM): Covers damages during the installation of machinery or metal structures. It includes potential losses due to material damage on the project site and covers leased equipment or machinery.
3. Ten-Year Guarantee Insurance: Protects property owners against construction defects that affect the building’s stability, with a coverage period of 10 years after the completion of the work.
4. Accident Insurance for Construction Agreement: Requires companies to hire insurance to protect workers against work-related accidents during the construction process.
5. Public Liability Insurance: Covers the damages the construction company may cause to third parties, whether people or properties, due to unforeseen accidents.
6. Professional Liability Insurance: Protects the professionals involved (architects, engineers, builders) against potential damage to third parties resulting from their professional activity.
7. Bond Insurance for Payments: Offered as an alternative to a bank guarantee, it ensures the return of amounts paid in advance if the construction is not completed or delivered within the stipulated time frame.

Taking out these insurances is not only a legal obligation but also a vital strategy to protect investments and minimize risks associated with any incident. Moreover, having specialized advice on construction insurance can make a difference in the proper management of any incident or claim that may arise.

At RialtoSur, we collaborate with a team of insurance law experts who can offer you advice to ensure your project is adequately protected.